tax breaks — September 08, 2021

Tax Relief for Hurricane Ida—Extended Deadlines & More

by Susannah McQuitty

State of Louisiana graphic.

Tax Relief for Hurricane Ida—Extended Deadlines & More

Hurricane Ida has passed, but its effects are far from being over—our hearts go out to those who have been affected.

Thankfully, disaster relief measures are inbound, including automatic tax deadline extensions and other forms of tax relief.

Which tax deadlines have been extended for Ida victims?

Tax deadlines falling between August 26, 2021 and January 3, 2022, have until the latter date to file various individual and business tax returns and make tax payments.

That goes for extended tax returns (due October 15), quarterly estimated tax payments (due September 15), and quarterly payroll and excise tax returns (due on November 1, 2021). It also applies to any tax-exempt organizations, who operate on a calendar-year basis, that had a tax extension due on November 15, 2021.

Who counts as a Hurricane Ida victim?

If you live or have a business anywhere in the state of Louisiana, you’re considered a victim of Ida in terms of tax relief. That said, affected taxpayers who don’t live or have a business in Louisiana can call the IRS disaster hotline at 866-562-5227 to request tax relief.

What if I get a letter from the IRS that says I’m late making a payment or filing a form?

The IRS will automatically identify that you’re located in the covered disaster area and apply your extended deadlines, so if you get a letter saying you owe penalties for late payments or forms, call the telephone number on the letter (officially called a “notice”). The IRS will waive the penalty.

If I work with a relief organization to help Louisiana residents recover, do I get tax relief?

Yes—if you work with a recognized government or philanthropic organization to help in the covered disaster area, the deadline extensions apply to you, too.

Do people who were visiting Louisiana during the hurricane get tax relief?

Any individual visiting the covered disaster area who was injured as a result of the disaster is entitled to relief.

Are there any tax deductions for losses from Hurricane Ida?

Residents and Louisiana-based business owners have the option of claiming disaster-related losses on their taxes that are not covered by insurance or other reimbursements. You can claim those losses in either the year when the event occurred, or the prior year.

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